Summary
- The COVID-19 Pandemic has disrupted business activities leading to a significant business loss in many sectors primarily hospitality, tourism, airlines, and retail industry, pushing operators towards insolvency
- Government stimulus programs such as job-keeper program and a temporary moratorium on director liability for insolvent trading are set to become ineffective from September end to November, pointing towards a possible uptick in insolvencies
- Letter of extension for the stimulus measures and other relief programs to December 31 from the Australian Institute of Company Directors, indicates prevailing uncertainty of businesses in Australia
Voluntary Administration allows an insolvent company to be evaluated by an independe…
Read the full article at: https://kalkinemedia.com/au/news/economy/will-australia-experience-a-surge-in-voluntary-administration-once-financial-stimuli-lapses